India's exports up by 25.41% to USD 57.03 Billion in February 2022

15 Mar 2022 , 11:22 AM

India’s overall exports (Merchandise and Services combined) in February 2022* are estimated to be USD 57.03 Billion, exhibiting a positive growth of 25.41 per cent over the same period last year and a positive growth of 27.07 per cent over February 2020.

Overall imports in February 2022* are estimated to be USD 69.35 Billion, exhibiting a positive growth of 35.64 per cent over the same period last year and a positive growth of 44.62 per cent over February 2020

India’s overall exports (Merchandise and Services combined) in April-February 2021-22* are estimated to be USD 601.77 Billion, exhibiting a positive growth of 36.19 per cent over the same period last year and a positive growth of 23.44 per cent over April-February 2019-20. Overall imports in April-February 2021-22* are estimated to be USD 683.01 Billion, exhibiting a positive growth of 51.51 per cent over the same period last year and a positive growth of 21.66 per cent over April-February 2019-20.

Merchandise exports in February 2022 were USD 34.57 Billion, as compared to USD 27.63 Billion in February 2021, exhibiting a positive growth of 25.10 per cent. As compared to February 2020, exports in February 2022 exhibited a positive growth of 24.60 per cent.

Merchandise imports in February 2022 were USD 55.45 Billion, which is an increase of 36.07 per cent over imports of USD 40.75 Billion in February 2021. Imports in February 2022 have registered a positive growth of 46.28 per cent in comparison to February 2020.

The merchandise trade balance for February 2022 was estimated at USD (-) 20.88 Billion as against USD (-) 13.12 Billion in February 2021, which is a decline of (-) 59.18 per cent. As compared to February 2020 (USD (-) 10.16 Billion), trade balance in February 2022 exhibited a negative growth of (-) 105.45 per cent.

Aditi Nayar, Chief Economist, ICRA said “With a much sharper YoY growth in non-gold imports relative to aggregate merchandise exports, the merchandise trade deficit rose to US$20.9 billion in February 2022 from US$13.1 billion in February 2021.While higher commodity prices will inflame imports in March 2022, the volume of oil imports will play a key role in determining the size of the trade deficit. We expect the trade deficit to remain higher than US$20 billion in the ongoing month. “

The increase in merchandise exports in February 2022 relative to the year-ago level was chiefly propelled by engineering goods and petroleum products. Encouragingly, engineering goods exports have averaged above US$9 billion per month in FY2022 so far.  Benefitting from higher commodity prices and bouts of global optimism, India’s merchandise exports are set to print around US$410 billion in FY2022.

“With the sharp rise in the trade deficit, we expect the current account deficit to have crossed 3% in Q3 FY2022, for the first time since the June 2013 quarter, before receding somewhat in the ongoing quarter. For FY2023, we project the current account deficit at 2.8% of GDP if the crude oil price averages at US$115/barrel, the likelihood of which will crucially depend on the duration of the geopolitical tensions,” ICRA said.